__Return of the coin...__ Earlier this week, crypto prices fell after US officials [recovered](https://snacks.robinhood.com/newsletters/1OGX2SxRlMqhAffcNdq8SN/articles/3bGR8UcE6cLGCm5DBw9eR/) $2.3M in Bitcoin ransom. *Yesterday*, Bitcoin surged 9% after El Salvador became the first country to approve the cryptocurrency as legal tender. El Salvador currently uses the US dollar as its official currency. Expect some cryptic changes:

- __1.__ Businesses will have to accept Bitcoin as payment. 
- __2.__ Salvadorans will be able to pay taxes and bank loans in BTC.
- __3.__ Salvadorans who convert BTC to other currencies won't pay capital gains tax.

__A new idea indeed...__ El Salvador's President and his New Ideas party say the move will improve financial inclusion among the 70% of Salvadorans who *don’t* have access to traditional financial services. Introducing BTC as legal tender could also ease the "remittance fee" burden:

- __One in four__ Salvadorans live abroad, mostly in the US. Extreme poverty and criminal violence has caused mass migration from the country, home to 6.5M. 
- __Nearly three of every 10 dollars__ in El Salvador's economy come from remittances — aka: money that family living abroad sends back home. 
- __$6B:__ Remittances sent to El Salvador hit a record last year. But money transfer through banks often comes with fees that can add up quickly.  BTC is often cheaper and easier to transfer. 


Again

__This could be a valuable experiment...__ for developing countries considering crypto as legal tender. But analysts are worried about the economic risks posed by BTC’s extreme volatility. El Salvador is one of Central America's poorest countries, and has struggled to manage its finances. It could benefit by converting BTC to $$$ when the crypto's price is high, to help cover its huge deficit. On the flip side, things could go sour if BTC moves the other way, as it has over the past month. 

Making crypto history: El Salvador becomes the first country to approve Bitcoin as legal tender

__Bombshell...__  The nonprofit publication __ProPublica__ dropped an investigation revealing how the 25 richest people in the US pay little to no income taxes compared to their net  worth. The story is causing a stir, partly since leaking tax returns is a federal crime. ProPublica says it obtained IRS data from an anonymous source. The data = tax returns of thousands of America's wealthiest, spanning 15+ years. The Treasury Department is [investigating](https://www.cnbc.com/2021/06/09/us-investigates-disclosure-of-tax-records-on-rich-americans.html) the leak. From 2014 to 2018:

- __Warren Buffett__ paid $24M in taxes on $125M of reported income, while his wealth grew by $24B thanks to investments. His "true tax rate" = 0.10%.
- __Jeff Bezos__ paid nearly $1B in taxes on $4B+ income, while his wealth grew by $99B. True tax rate: 0.98%.
- __Elon__... Musk we say it? Elon shelled out $455M in taxes on $1.5B reported income, while his wealth grew $14B. True tax rate: 3.27%.

__Here's how...__ In the US, income is taxed – net worth *isn't.* So while Elon's wealth grew by billions as Tesla stock rose, he wasn't taxed on investments that he didn't sell (aka: unrealized gains).  ProPublica calculated “true tax rate” — taxes paid as a percentage of total wealth gains.

- __Still,__ ProPublica [says](https://www.propublica.org/article/you-may-be-paying-a-higher-tax-rate-than-a-billionaire?campaign_id=4&emc=edit_dk_20210609&instance_id=32555&nl=dealbook&regi_id=83712167&segment_id=60208&te=1&user_id=05114d149fce45660cf01aea64f5af7e) that the 25 richest Americans paid an average personal federal income tax of only 16% from 2014 to 2018 — less than many "regular" people pay. 
- __How:__ Billionaires avoid forms of income like wages, that are taxed at 37% for their income bracket. Also: accounting gymnastics. 


__This scandal could help fuel Biden's policy...__ Many Americans are shocked to see billionaires' ultra-low tax rates. President Biden is [seeking](https://snacks.robinhood.com/newsletters/2FGYY02td4t3rp9KjKvLQM/articles/1d7eiIZp8iwgUI9aKXGIQZ/) tax increases on the wealthy to fund proposed spending on infrastructure and social programs, including nearly doubling the capital gains tax rate to 39.6% for Americans earning $1M per year or more. 

The Big IRS Leak: from Elon to Warren Buffett, the US' richest pay little to no income taxes

Dow Jones

S&P 500

Nasdaq

Bitcoin

_Bitcoin's tender embrace [Linda Raymond/Moment via GettyImages]_

💴  Bitcoin's legal tender moment 

__Bite your coin...__ and your nails. Bitcoin fell to its lowest level in months yesterday — its crypto buddies Ether and Dogecoin fell, too. The dip happened after US officials recovered $2.3M in crypto that was paid as ransom to the Colonial Pipeline hackers. ICYMI: the US' largest fuel pipeline got [hacked](https://snacks.robinhood.com/newsletters/4G8N3WpBgRoMSpXHAML44t/articles/v7Ixe754ezFPvMk4gSHBw/) last month. Colonial [paid](https://www.cnbc.com/2021/06/08/colonial-pipeline-ceo-testifies-on-first-hours-of-ransomware-attack.html) the hackers $4.4M in Bitcoin to reclaim its systems. 

- __Bye bye, Bitcoin:__ Investigators accessed the password for one of the hackers’ Bitcoin wallets, and managed to seize more than half of the ransom. 
- __Hello, Feds:__ The $$$ was recovered by the newly launched Ransomware and Digital Extortion Task Force, which was created as part of the government's response to surging cyberattacks.

__Bitcoin for hostage...__ The ransomware surge has been putting a negative spotlight on Bitcoin. One cyber expert [called](https://www.npr.org/2021/06/08/1004223000/how-a-new-team-of-feds-hacked-the-hackers-and-got-colonial-pipelines-bitcoin-bac) BTC the "oxygen that fuels this ransomware fire." Now, the US government is getting involved as hackers are increasingly targeting critical infrastructure. Experts believe Russia is funding this "[ransomware plague](https://www.axios.com/ransomware-industry-jbs-colonial-1c7594e5-31e5-4c05-b74c-45a040413cb2.html)." 

- __This month,__ Earth's largest meat producer got hit. And Energy Secretary Jennifer Granholm [said](https://www.axios.com/cyber-attacks-energy-secretary-power-grid-granholm-d3868010-ce1a-4c23-b15d-89b131eeb728.html) that bad actors are likely trying to shut down the US power grid "as we speak." 

__The Feds pulled back the curtain...__ Hackers who hijack computer systems demand payment in BTC, because it's hard to trace — but yesterday's ransom recovery proved it's *not impossible*. It's a big win for the government, because ransomware is [rarely](https://www.npr.org/2021/06/08/1004223000/how-a-new-team-of-feds-hacked-the-hackers-and-got-colonial-pipelines-bitcoin-bac) recovered. But it may have raised concerns over the security and anonymity of Bitcoin. Another potential reason behind the crypto drop: fear that a regulatory clampdown is coming for the crypto space. 

Crypto prices drop after US officials recover $2.3M in Bitcoin ransom

__503 Service Unavailable...__  The internet had a bad day. Dozens of websites, including the NYT and the UK government's portal, went dark for nearly an hour yesterday. Reddit's and Amazon's sites were also affected. Blame an internal glitch at cloud-service provider __Fastly__. 

- __Fastly is a "stoxygen" company...__ You don't see it, but it's kind of everywhere. Companies use it to speed up their webpages and get things to your screen *faster* (hence, Fastly).
- __Fastly hosts content__ (think: news articles) and delivers them to your screen from a server near you, reducing the time it takes for info to reach users. 

__Fastly was down...__ *but its stock wasn't.* Fastly shares *jumped* 11% yesterday (awkward), despite the outage. Shares of rival content delivery networks, like __Cloudflare__ and __Akamai__, were also up. 

Down

__Investors noticed the flattering details...__ within the not-so-flattering headlines. The outage highlighted how many of the world’s websites rely on Fastly and other content delivery networks. While reading the outage news, investors may have noticed that Fastly has 336 enterprise clients — including big names like Amazon, NYT, Stripe, Shopify, and even a government. The bad news generated some big buzz for Fastly.

CNN, PayPal, and the UK government's website were all down because of one company 

_Fastly's content (un)delivery moment [Pauline St. Denis/Corbis/VCG via GettyImages]_

💰  Bitcoin, un-ransomed 

__Fly like a G7...__ and drop bad news on Big Tech. The Group of Seven = the US, UK, Canada, France, Germany, Italy, and Japan. The G7 met in London over the weekend — and left with some tea to spill: the countries [agreed](https://www.wsj.com/articles/g-7-nations-agree-on-new-rules-for-taxing-global-companies-11622893415?mod=searchresults_pos5&page=1) that multinational companies should pay a minimum tax rate of at least 15% in each country in which they operate. 

- __For a long time,__ companies like __[Google](https://robinhood.com/stocks/GOOGL)__ and __[Amazon](https://robinhood.com/stocks/AMZN)__ have been plopping their international headquarters in countries with low corporate tax rates. 
- __Think:__ Ireland, which has a 12.5% tax rate, hosts the European HQs of many tech and pharma giants. That's created beef with Germany, France, and other EU countries where these companies *also* operate (they want more tax money).

__The luck of the Irish...__ may end. The deal marks a big step toward potentially adopting a 15% global minimum corporate-tax rate. That Dublin office = not so clutch anymore. Companies would have to pay the minimum rate *regardless* of where they're based. The agreement aims to stop large multinationals from seeking out tax havens —  and force them to pay more of their income to governments. But it still has to go through the G20, which includes China, India, and other developing economies.


_The mood at Dublin tech pubs [mihailomilovanovic/E+ via GettyImages]_

Taxy

__This could level the playing field...__ and end the "race to the bottom." For decades, countries have been competing with each other to attract corporate investment for economic growth. The main way to do that: *lower companies' taxes*. In 2000, more than [55](https://www.washingtonpost.com/us-policy/2021/03/15/yellen-pushes-global-minimum-tax-white-house-eyes-new-spending-plan/) countries had corporate tax rates above 30% — now, fewer than 20 do. President Biden wants to raise corporate taxes in the US to [fund](https://snacks.robinhood.com/newsletters/2FGYY02td4t3rp9KjKvLQM/articles/1d7eiIZp8iwgUI9aKXGIQZ/) government programs. The admin is backing  a 15% global minimum to help keep the US competitive.

The G7's historic global tax agreement: corporate giants should pay at least 15% 

__Not vax-related...__ for once. The Food and Drug Administration has made headlines for another reason. Yesterday, the FDA approved __[Biogen's](https://robinhood.com/stocks/BIIB)__ Alzheimer’s drug aducanumab (rolls off the tongue). Biogen shares soared 38% on the news. It's a big deal — so big that the Nasdaq [halted](https://www.investors.com/market-trend/stock-market-today/dow-jones-falls-3-key-stocks-in-buy-range-biogen-rallies-ahead-of-fda-decision/) trading of Biogen shares ahead of the FDA's decision.

- __#1:__ It's the first new therapy for Alzheimer's in *20 years*. It's also the first FDA-approved drug to slow mental decline in people living with Alzheimer’s.
- __6M__ people are affected by Alzheimer's in the US, where the disease is the sixth-leading cause of death. 
- __$56K:__ The drug's list price *per year*. It's expected to generate billions in sales for Biogen. 

__There's a catch...__ The FDA approved it on the condition that Biogen conduct *another* clinical trial. Many Alzheimer’s experts aren't happy with the approval and its mixed supporting data. Some aren't convinced the clinical trial data was enough to prove the drug works.


Drugs

__Drug stocks depend on drug pops...__ Which is why Biogen's five-year stock chart looks like a rollercoaster. In March 2015, Biogen stock was trading even higher than it was yesterday after it [dropped](https://investors.biogen.com/news-releases/news-release-details/biogen-idec-presents-positive-interim-results-phase-1b-study) positive early-stage data from an aducanumab trial (yep, the same Alzheimer's drug). Then in July 2015,  Biogen released additional data about the trial that disappointed investors — and lost $20B in market value as its stock plunged.  The results of Biogen’s next aducanumab trial could impact the stock again. 

Biogen's Alzheimer's breakthrough: shares soar nearly 40% after FDA approval

💰 The Big Tech tax 

__Dream on...__ This month marks the 90th anniversary of the American Dream — or at least, when the term was first [coined](https://www.ncronline.org/blogs/ncr-today/happy-anniversary-american-dream). Historian James Truslow Adams described it as "that dream of a land in which life should be better and richer and fuller for every man, with opportunity for each according to ability or achievement." Ninety years later, thousands of Snackers told us whether they think the American Dream is still alive. 

- __The TLDR:__ It was 50-50. Most of you think the American Dream is  alive, but some think it's dying — and some think it's dead, but could return.
- __The core of the Dream:__ 26% said  financial freedom, 17% said  equal opportunity, and 40% said  a combo of those plus material ownership and racial equity.
- __Key to achieving the Dream:__ 40% said hard work, and 43% said a combo of hard work, luck, and privilege.

__Lay down the stats...__ Generations of Americans have climbed the economic ladder for [decades](https://www.weforum.org/agenda/2020/09/social-mobility-upwards-decline-usa-us-america-economics/#:~:text=For%20decades%2C%20a%20majority%20of,harder%20to%20make%20this%20ascent.), but there are signs that economic mobility is waning. The fraction of Americans who earn more than their parents has shrunk from 90% of those born in the 1940s to 50% of those born in the 1980s. Income inequality in the US has been rising for decades, and is [wider](https://snacks.robinhood.com/newsletters/bg6FaCgu8qc8z1Zllmofx/articles/3ZVsKmCRQNLUOSaAVHfNJi/) between Black and white Americans.  

__In your words...__ We asked what the American Dream means to you today:

- *“The ability to move above the station you were born in life through hard work and perseverance.”*
- *"To fail and have continuous opportunity to get back on our feet regardless of discrimination."*
- *“Filling up my gas tank without checking my bank balance first.”*
- *"Exists because people are still willing to do anything to get to America."*


_What Snackers said the American Dream means to them_

__The dream is what you make of it...__ For some, it aligns with Adams' first description: *opportunity* to succeed, regardless of your background.  For others, it's a lie. And for some, it's changing: thanks to stimulus spending, US households have saved [$2T](https://www.wsj.com/articles/consumer-spending-personal-income-april-2021-11622154969) more than they would have normally. In April, US household income was [11%](https://www.wsj.com/articles/consumer-spending-personal-income-april-2021-11622154969) higher than *pre*-pandemic levels. Biden's presidency could further shape this trajectory, with trillions in proposed spending on social initiatives. 

Is the American Dream still alive? We're diving into your answers

__What do you meme?...__ __[GameStop](https://robinhood.com/stocks/GME)__ reports on Wednesday. ICYMI: GameStop shares have soared 1,400% this year as retail traders [rallied](https://snacks.robinhood.com/newsletters/6jwYdiy4al8n5v0GOdIik/articles/3BaPiKzHQyiMoyxvpIyqNG/) around the money-losing video game company. Some are bullish about its new, ecomm-savvy board. But annual sales have fallen each year since 2017. In April, GameStop raised $551M by [selling](https://www.cnbc.com/2021/04/26/gamestop-shares-jump-after-the-reddit-favorite-raises-more-than-500-million-in-stock-sales.html) new shares and said its CEO is stepping down. Investors will likely be watching for signs of ecommerce progress.

__After Cream of Mushroom Monday...__ and Tomato Bisque Tuesday: __[Campbell Soup](https://robinhood.com/stocks/CPB)__ serves up earnings on Wednesday. The canned soup legend [thrived](https://snacks.robinhood.com/newsletters/7oqsnC8zl2TBCc1NByeQF1/articles/3CS1ynDs6oVhxFPNtQOv9I/) early in the pandemic, as people stocked up on Campbell classics like Snyder's pretzels and Goldfish. After nearly a decade of falling sales, Campbell's soup sales started *growing* again. But growth has slowed as we return to a lifestyle that involves *less* can-hoarding. Campbell is trying to keep momentum going with Millennial-friendly recipes — we'll see if it's succeeding.


Events

Coming up this week...

__Recovery is chugging along...__ Jobless claims [fell](https://www.wsj.com/articles/global-stock-markets-dow-update-05-27-2021-11622100790?mod=markets_lead_pos1) to a new pandemic low, and wages are [growing](https://www.nytimes.com/2021/06/03/business/economy/wage-growth-pandemic.html).  On the flip side: prices are rising faster than expected as the US economy revs up and shortages abound. Prime example: Ubers are getting [pricier](https://snacks.robinhood.com/newsletters/7E0Xgqi9nVw0CWQRdC3lvE/articles/4mDChkIDEAYryjE2WU9OBa/) (and they're always 24 minutes away). Companies are struggling to bring workers back, since  42% of people on enhanced unemployment earn more than they did at their jobs. 

__Crypto ransoms intensify...__ Cyber attacks are continuing to target critical infrastructure. Last week, Earth's largest meat producer was [forced](https://snacks.robinhood.com/newsletters/5UsR9CJqj5w4UCSqDJZdp7/articles/4fnXenwFLWyEzrp3u1OJl0/) to shut beef plants after a ransomware attack. Last month, the US' largest fuel pipeline was also [hit](https://snacks.robinhood.com/newsletters/4G8N3WpBgRoMSpXHAML44t/articles/v7Ixe754ezFPvMk4gSHBw/)  — and paid $4.4M in Bitcoin to reclaim its systems. Experts believe Russia is funding "[the ransomware plague](https://www.axios.com/ransomware-industry-jbs-colonial-1c7594e5-31e5-4c05-b74c-45a040413cb2.html)." We'll be looking to see if the US government takes a stronger stance. President Biden meets with Russian president Putin next week.


Zoom Out

Stories we're watching...


- __[Popcorn](https://snacks.robinhood.com/newsletters/5UsR9CJqj5w4UCSqDJZdp7/articles/7dL53WKkpyqfvZJO0amHD9/):__ __[AMC](https://robinhood.com/stocks/AMC)__ debuted a loyalty program for individual investors (feat. free popcorn), as shares soared. It's catering to the retail investor.
- __[Blue](https://snacks.robinhood.com/newsletters/jF3LIog2WHKh7zqo33DuG/articles/2QKrMaJaf3KxzRpKyGkYbA/):__ __[Twitter](https://robinhood.com/stocks/TWTR)__ launched its first subscription service,  "Twitter Blue," for ~$3/month — but will people pay for social?


ICYMI

Highlights from last week...

🇺🇸  Is the American Dream still alive? 

__I’ll have the Musk Burger...__ *with a side of Ludicrous Mode Mayo*. That could soon be a reality for Tesla owners: __[Tesla](https://robinhood.com/stocks/TSLA)__ just [filed](https://electrek.co/2021/06/01/tesla-files-trademark-restaurant-services/) trademarks for restaurant services, including take-out, self-service, and pop-up restaurants. Think: fries and pressed juice while you juice up your Model S — instant "range anxiety" killer. 

__Pull up the Elon tweet...__ Since 2017, Tesla execs have been flirting with restaurant concepts. Picture: Tesla-only charging stations with convenience stores and upscale burger joints. In 2018, Elon tweeted that he was “Gonna put an old school drive-in, roller skates & rock restaurant" at a Tesla Supercharger station in LA. That hasn't happened yet, but Tesla *has* been developing a "Charge Club" model.

- __Tesla opened a lounge__ at its Kettleman City, CA Supercharger station. Think: free cappuccinos while your car charges — like an airline lounge, but for EV trips.
- __Owner-only perks__ reinforce the "lifestyle brand" strategy. That's why Chinese EV maker __[Nio](https://robinhood.com/stocks/NIO)__ created "Nio Houses," sleek showroom-clubhouses to give Nio owners a place to chill.


_Meanwhile at a Tesla "Charge Club" [Flashpop/DigitalVision via GettyImages]_

Mayo

__Exclusivity breeds brand loyalty...__ exactly what Tesla needs right now. Tesla’s global EV market share [fell](https://www.cnbc.com/2021/06/02/tesla-faces-pressure-as-ev-competition-heats-up-ex-ford-ceo-says.html#:~:text=According%20to%20Credit%20Suisse%20analyst,down%20from%2029%25%20in%20March.) to 11% in April, from 29% in March. __[Ford](https://robinhood.com/stocks/F)__ and others are dropping sleek EVs at attractive prices, and the Biden admin is pushing for wider EV adoption. Competition is hotter than ever, and Tesla needs differentiators to justify its higher prices. With "Charge Clubs," Tesla can offer an ecosystem that others haven't built yet. Just like some people pay extra for loyalty flights with lounges, some might buy a Tesla over a Mach-E thanks to "Charge Clubs." 


Tesla’s drive-in restaurant moment couldn’t have been served at a better time

__I'm Blue, da ba dee da ba di...__ Had to. Yesterday, __[Twitter](https://robinhood.com/stocks/TWTR)__ started [rolling out](https://blog.twitter.com/en_us/topics/company/2021/introducing-twitter-blue.html) its first subscription service in Australia and Canada: "Twitter Blue." For ~$3/month, Blue offers access to exclusive features and perks. Like:

- __Undo Tweet:__ A 30-second timer to undo your tweet before it posts. Better than a delete button, worse than an edit button. 
-  __Bookmark Folders:__ To better organize your saved tweets. Side note: you can save tweets?
- __Reader Mode:__ Provides a "beautiful" reading experience for those long threads we all hate. 
- __*Not* included:__ The power to exceed the 280 character limit. Guess we're sticking with haikus. 

__I see you diverisifying...__ Twitter confirmed that "free Twitter" is never going away (greeeeat). Subscriptions are just part of its goal to double annual revenue by 2023. Ad revenue makes up ~90% of Twitter's sales, so subs could add some #diversification — which is currently top of mind for social media companies. 

- __Apple rolled out iOS changes__ that could [hurt](https://snacks.robinhood.com/newsletters/3pnV87VuDPifCjtp4W4gHh/articles/7vbuNAkTTZcIt3oAQiUaOr/) social apps' precious ad-targeting abilities. 
-  __Social giants have been taking heat__ from lawmakers and regulators about privacy and engagement-driven targeting algorithms. 


__Social media subscriptions are an untested concept...__ __Facebook__, Insta, Twitter, and __Snap__ are free because they sell eyeballs to advertisers. We don't know how many people will actually pay for Twitter Blue, which still shows ads. But if a social giant offered an *ad-free* subscription, that could have wide appeal. Social apps reward engagement because they want users to spend more time scrolling ads. An ad-free sub could change their business incentives. 

Twitter launches its first subscription service — but will people pay for social?

🍧 Tesla's drive-in restaurants

__Vegans aren't sweating it...__ __JBS__, aka: Earth's largest meat producer, was [forced](https://www.bloomberg.com/news/articles/2021-05-31/meat-is-latest-cyber-victim-as-hackers-hit-top-supplier-jbs) to shut down all of its US beef plants after a cyberattack over the weekend. The ransomware attack halted output at facilities that supply *nearly a quarter of America's meat* — and some in Australia and Canada. Ransomware = hijacking computer systems and demanding payment for the release of the "hostage."  The FBI is [blaming](https://www.forbes.com/sites/joewalsh/2021/06/02/the-fbi-is-blaming-the-jbs-hack-on-a-russian-speaking-criminal-gang-heres-what-we-know-about-them/?sh=76f8d4d7fd27) a Russia-based hacking group called REvil (classic). JBS' CEO [said](https://www.axios.com/ransomware-industry-jbs-colonial-1c7594e5-31e5-4c05-b74c-45a040413cb2.html) that most plants would be operating by Wednesday (aka: yesterday).

__*Niet good*...__ JBS is one of four meat giants that control more than 80% of US beef processing, so this attack is raising national food security alarms. Cyber attacks have been increasingly targeting critical infrastructure. Think: pipelines, power grids, and food production facilities. 

- __Since May 2020,__ there have been 40+ publicly reported ransomware attacks against food companies. 
- __Last month:__ Colonial,  the US' largest fuel pipeline, was [hit](https://snacks.robinhood.com/newsletters/4G8N3WpBgRoMSpXHAML44t/articles/v7Ixe754ezFPvMk4gSHBw/) with a crippling ransomware attack. That caused a run on the pumps, since Colonial carries nearly half of the East Coast's gas. Colonial paid [$4.4B](https://www.wsj.com/articles/colonial-pipeline-ceo-tells-why-he-paid-hackers-a-4-4-million-ransom-11621435636) worth of Bitcoin to reclaim its systems. 
- __Last year:__ [~$350M](https://www.axios.com/ransomware-industry-jbs-colonial-1c7594e5-31e5-4c05-b74c-45a040413cb2.html) worth of cryptocurrency payments went to ransomware attacks, up 3X from 2019. "Ransomware-as-a-Service" is a business now. Victims don’t want to lose their data, so they pay up.


Beef

__This corporate problem may require a government solution...__  Hackers are seeking payment in Bitcoin, which is hard to trace — and might require sophisticated government intelligence. Plus, each time a company pays a ransom, it encourages more attacks. Experts [believe](https://www.axios.com/ransomware-industry-jbs-colonial-1c7594e5-31e5-4c05-b74c-45a040413cb2.html) Russia is funding the "ransomware plague." Companies can't pressure Russia to stop — but the government can. President Biden will have plenty to discuss when he meets with Russian president Putin later this month.


The world’s biggest meat supplier shut plants after a major cyber attack — here's what might help

__The corn is popping...__ and AMC smells butter. __[AMC](https://robinhood.com/stocks/AMC)__ stock nearly doubled  yesterday, rallying a whopping 95%. Shares popped so quickly that they triggered [four](https://www.nyse.com/trade-halt-current) NYSE trading halts  — aka: the NYSE temporarily paused trading of AMC stock, because it moved too rapidly outside of its "price band." This year, the stock is up over 3,000%, and AMC now boasts a $28B market cap, up from $500M a year ago.  

- __While it's hot:__ On Tuesday, AMC [sold](https://www.marketwatch.com/story/amc-sells-85-million-shares-at-near-4-premium-to-mudrick-capital-stock-surges-2021-06-01) 8.5M new shares for $230M to an investment firm called __Mudrick Capital__. 
- __Not the first time:__ AMC has sold shares multiple times this year to capitalize on its stock surges and raise cash.

__The corn is free...__ AMC stock closed at a record high yesterday, even while 30% of movie theaters are still closed and some studios are going direct-to-streaming. Retail traders have rallied around the stock, helping AMC avoid pandemic bankruptcy. Now, AMC is turning its individual shareholders into loyalty members:

-  __AMC unveiled a new portal__ on its website, just for retail investors. Shareholders can access exclusive promos, like discounts and invitations to special screenings.
-  __A free (large) popcorn__ is another new [perk](https://investor.amctheatres.com/newsroom/news-details/2021/AMC-Entertainment-Holdings-Inc.-Unveils-All-New-Communication-Initiative-to-Engage-Directly-With-Its-Sizable-Retail-Shareholder-Base-Through-the-Launch-of-AMC-Investor-Connect/default.aspx) for AMC retail investors, along with direct communications from CEO Adam Aron.

_It's on the house  [SolStock/E+ via GettyImages]_

__AMC is catering to the retail investor...__ 3.2M individual investors own 80% of AMC shares. Now, AMC is [taking](https://investor.amctheatres.com/newsroom/news-details/2021/AMC-Entertainment-Holdings-Inc.-Unveils-All-New-Communication-Initiative-to-Engage-Directly-With-Its-Sizable-Retail-Shareholder-Base-Through-the-Launch-of-AMC-Investor-Connect/default.aspx) steps to engage retail shareholders in a way we haven't seen before. In the words of AMC's Aron: "these people are the owners of AMC, and I work for them.” AMC's moves speak to the growing importance of retail investors in the markets.

AMC debuts a loyalty program for individual investors, as shares nearly double in a day

🍿 AMC's stock surge

__Checked both Uber and Lyft...__ then checked the bus schedule. If you were one of the [7M](https://people.com/travel/air-travel-hits-pandemic-era-highs-memorial-day-weekend/) people who passed through TSA during Memorial Day weekend, there's a good chance you Ubered/Lyfted from the airport. There's also a good chance that your rides broke the bank. ICYMI: surge pricing is the new regular pricing. 

- __+40%:__ How much the cost of an Uber/Lyft ride was up in April, [according](https://www.nytimes.com/2021/05/30/technology/uber-lyft-surge.html) to one research firm. In March, prices surged 37%. 

__*Your Uber is 24 minutes away*...__ dope. __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ are dealing with major driver shortages, which is boosting prices and wait times. Half of Americans are vaxed, the CDC lifted its mask mandate for FVPs (fully vaxed peeps), and Shot Girl Summer is starting. Ride-hailers don't have enough drivers to meet rebounding demand. 

- __Why drivers aren't returning:__ President Biden extended the $300 extra/week unemployment benefit through September, and 42% of people on unemployment now [earn more](https://snacks.robinhood.com/newsletters/3o33BaDrVUn7Qvhf5sZumz/articles/2rjYa4D3zFcw5Zgdm33xCE/) than they did at their jobs. Plus, childcare and corona concerns are keeping workers home. 
- __Why prices are rising:__ Uber/Lyft are offering large bonuses and running ad campaigns to get people driving — in addition to jacking up prices for rides. 
- __It's not just an Uber thing:__ Prices are [rising](https://snacks.robinhood.com/newsletters/7HkkS4VanKbpTUDjbeQ51k/articles/5tVDiejV1yGV2RWElrSk28/) across many industries, from food to cars, as the US economy revs back up and shortages abound. In April, a key inflation indicator [rose](https://www.cnbc.com/2021/05/28/pce-price-index.html) a faster-than-expected 3.1%.

_Waiting for the surge pricing to end like... [FluxFactory/E+ via GettyImages]_

Flated

__The gig economy is in an awkward phase...__ Ride-flation addresses Uber and Lyft's biggest PR issue: *not paying drivers enough*. More than other types of companies, Uber/Lyft can easily pass on extra costs to consumers. Now, drivers are getting paid more — but customers aren't happy. Long-term, higher fares may cause customers to shift to other modes of transport. That's why Uber/Lyft are trying to solve the shortage before riders do. 

The Great Uber Shortage: ride-hail prices and wait times are soaring on driver scarcity

__A cushy earnings report...__ Canadian pot giant __[Canopy Growth](https://robinhood.com/stocks/CGC)__ revealed that sales were 37% higher in its latest fiscal year. Canopy is finally selling more pot than it harvests, and still holds the #1 spot in Canada's “flower” market (flower = weed). The buzz kill: Canopy *lost* $1.7B, but says it's still on track to turn a profit next year. Despite strong growth across categories, earnings missed expectations and the stock fell 7% yesterday.

__Looking beyond the flower...__ Canopy's goal of "unleashing the power of cannabis to improve lives" goes *beyond* leafy greens. Canopy has been leaning into "beyond the flower" products. Think: CBD wellness gummies and THC iced tea. It's even selling CBD [pet snacks](https://www.shopcanopy.com/en/martha-stewart-cbd) with Martha Stewart (for when your Schnauzer is stressed after work). "Beyond the flower" is thriving: Canopy's "Other" category saw the fastest growth last quarter.

- __Beverages:__ Canopy launched a portfolio of THC drinks in Canada, capturing a 35% dollar share of the entire category.
- __Edibles:__ From Sativa and Strawberry soft chews to cannabis-infused chocolates, Canopy is growing its line of edible treats.
- __Vapes:__ Canopy expanded its marijuana and CBD vape pen and cartridge offerings with the acquisition of __Ace Valley__.


__Legalization is still a big "if"...__ Despite being one of the biggest weed companies, Canopy's yearly sales were just $450M — less than 1% of  Bud-maker __[AB InBev](https://robinhood.com/stocks/BUD)__'s annual sales. To really grow, Canopy and other cannabis cos need marijuana to be federally legalized in the US — it's still as illegal as LSD at the federal level. While cannabis companies try to hash it out with the US government, "beyond the flower" products like CBD edibles and drinks will be key to growth. The CBD market is [expected](https://www.grandviewresearch.com/industry-analysis/cannabidiol-cbd-market#:~:text=The%20global%20CBD%20market%20is,USD%2013.4%20billion%20by%202028.&text=Marijuana%2Dderived%20CBD%20dominated%20the,share%20of%2061.4%25%20in%202019.) to grow to $13.4B by 2028, from $3.5B today.

Canopy gets high on "beyond the flower" growth — but it has a big buzz-killer

🚗  Uber's endless surge pricing 

__Long weekend on the beach...__ US air travel over Memorial Day weekend was [back](https://www.tsa.gov/coronavirus/passenger-throughput) to three-quarters of 2019 levels. The US economy is roaring back to life and is expected to grow 6.5% this year, its highest rate since 1984. Other rich countries are also rebounding: China’s economy expanded at a record 18.3% last quarter, and the UK is growing at the fastest rate since WWII. Driving recovery:

- __Vaccines:__ Wealthy countries poured billions into securing vaccines early for their citizens. In 2020, the US spent $12.4B on Operation Warp speed for vaccine development and delivery. Now [half](https://www.wsj.com/articles/half-of-u-s-adults-are-fully-vaccinated-11621974770) of US adults are fully vaxed.
- __Stimulus:__ Rich countries were able to afford stimulus programs to support their economies. The US spent a whopping $5T, more than any other country. 

__While rich countries rebound...__ poor nations are [falling](https://www.wsj.com/articles/covids-next-challenge-the-growing-divide-between-rich-and-poor-economies-11621343332?mod=hp_lead_pos4) further behind. Covid is surging, economies and health systems are crumbling, and poverty is increasing. The pandemic caused the first rise in extreme poverty  since the '90s. Emerging markets are on track to vaccinate  less than one-third of their citizens this year, versus 72% for developed nations. In Africa, just  0.4% of the 1.5B population has been fully vaxed. 

- __1.5M:__ The number of Covid deaths that have already been reported this year will soon surpass the 2020 tally of 1.8M. Latin America, Asia, and Africa account for 72% of deaths.
-  __34M__ people are on the brink of famine because of the pandemic, a record 35% annual increase, compounded by soaring food prices and weak tourism. 
- __100M:__ More than half of children in Latin America are out of school, and many are unlikely to return. Globally, 800M+ students don't have access to computers. 


Macro

__The Great Divide has long-term implications...__ Developing economies will take years to recover. Before the pandemic, the gap between the developing and the developed world was narrowing. The pandemic reversed that progress, deepening inequality. While the middle class barely budged in the US and in China, it's shrinking in developing countries. Looking ahead: more than half of low-income economies are at risk of fiscal crises, which could destabilize other regions. 


The Great Pandemic Divide: rich and poor economies are on diverging paths

__I like big budgets and I cannot lie....__ President Biden [proposed](https://www.npr.org/2021/05/28/1000843544/biden-proposes-a-huge-hike-in-government-spending-in-a-6-trillion-budget) a ginormous $6T budget for next fiscal year. It would push federal spending to its highest levels since WWII — and create deficits of at least $1.3T/year until 2030. The focus: infrastructure, public health, and education. Biden would nearly double the top capital gains tax rate on millionaires to 43.4%. TBD whether it'll fly in Congress, where Dems have a razor-slim majority.   

__Like a G6...__ more like G7. The Group of Seven = the US, UK, Canada, France, Germany, Italy, and Japan. The G7 summit is set for June 11, but the group could greenlight a minimum global corporate tax rate before then. Last week, the US Treasury [offered](https://www.reuters.com/business/finance/us-treasury-backs-off-21-global-minimum-corporate-tax-rate-wants-least-15-2021-05-20/#:~:text=The%20U.S.%20Treasury%20Department%20on,minimum%20for%20U.S.%20multinational%20firms.) to accept a minimum corporate tax of 15%. A global minimum could allow G7 countries to [stay competitive](https://snacks.robinhood.com/newsletters/2FGYY02td4t3rp9KjKvLQM/articles/1d7eiIZp8iwgUI9aKXGIQZ/) while raising taxes on corporate giants — key to funding Biden's budget proposal. 


__24/7 legging life...__ __Lululemon__ reports earnings on Thursday. Lulu found its zen in the WFH era thanks to the flexibility of its fits: athletic enough for a home yoga sesh, stylish enough for Whole Foods, and comfy enough for a Netflix binge. Direct-to-consumer revenue doubled in 2020 as Lulu's online sales dominated. We'll see how Lulu fared last quarter as the US reopened — retailers are [seeing](https://snacks.robinhood.com/newsletters/lmendgmwiqrFZ5v9KHvVo/articles/21BgOct7iwkh3NajATzc3g/) "revenge spending" on *non*-stretchy clothes. 

__A buzzy report...__ Canadian pot giant __Canopy Growth__ reports earnings today before markets open. 2020 was a breakout year for cannabis: legal sales across the US [hit](https://www.forbes.com/sites/willyakowicz/2021/03/03/us-cannabis-sales-hit-record-175-billion-as-americans-consume-more-marijuana-than-ever-before/?sh=3226b2af2bcf) a record $17.5B, up 46% from 2019. But Canopy's sales have also been growing thanks to "[beyond the leaf](https://snacks.robinhood.com/newsletters/3TPLYshPco821e473TlZwS/articles/3uw7AxyVGXLWeEmtpMqQbQ/)" initiatives. Think: CBD-infused sparkling water, CBD wrinkle cream, and a Martha Stewart partnership. We'll see how those newer products performed compared to the leaf.  


- __[Crypto](https://snacks.robinhood.com/newsletters/7JShb5XWJq91aGPuZDaZU2/articles/13qwbHppfBUjQj5YxqHiM6/):__ __Chia__, the "green" alternative to __Bitcoin__, just doubled its valuation and could IPO soon.
- __[Confirmed](https://open.spotify.com/episode/3qsMKlV4FMzcMnE8EQbNWl):__ __Amazon__ is buying __MGM__ for $8.5B, adding thousands of titles to Prime’s streaming library — streamers are (literally) [becoming](https://snacks.robinhood.com/newsletters/1N31BqWqFLT91MgZLUXNEq/articles/6ccELOc86lnzTpPcIn2vKo/) studios.  
- __[Anniversary](https://snacks.robinhood.com/newsletters/5FWjUZF34wCrp57CR8ykmX/articles/2HEWEQpeCQJy5XeMuzxH0v/):__ One year after George Floyd's murder, we looked at how companies have acted on $50B worth of racial equity pledges.


_Post-long weekend vibe [izusek/E+ via GettyImages]_

💵  The Great Divide 

__Fits like an oversized Gap hoodie...__ A classic 2000s look. __[Gap](https://robinhood.com/stocks/GPS)__ is taking off its Zuck hoodie and throwing on its interior designer glasses. The mall icon is partnering with __[Walmart](https://robinhood.com/stocks/WMT)__ to launch a home decor brand called Gap Home (creative). Think: decorations, organic cotton bedding, tabletops, and bath accessories. The confusing twist: the Gap-branded collection will be sold exclusively on *Walmart's* website. Under new CEO Sonia Syngal, Gap has been trying to start new revenue streams. Home goods are an obvious first choice. 

__The house is (still) hype...__ Gap recognized that a bit late. When lockdowns hit, Americans shifted their spending from jeans and cocktails to the only place that mattered: home. We [thought](https://snacks.robinhood.com/newsletters/7Fl0kcKPHzNEVEVwnee0Zp/articles/3djXYQJYytx1qKMDTR9yG1/) the DIY House Hype might start slowing down *last May*. Last quarter, __[Home Depot](https://robinhood.com/stocks/HD)__ and __[Lowe's](https://robinhood.com/stocks/LOW)__ proved that the House Hype is going stronger than ever. Plus, a booming housing market means more homes to fill with scented candles and wall sconces. 

- __For Gap:__ It's a distribution "[slam dunk](https://www.cnn.com/2021/05/26/business/gap-walmart-home/index.html)." While it's starting online, Gap Home will eventually be available in Walmart *stores*. Key stat: [90%](https://corporate.walmart.com/newsroom/2019/02/13/automation-is-reshaping-work-across-america-a-new-report-explores-the-impact-and-how-communities-might-respond) of Americans live within 10 miles of a Walmart.
- __For Walmart:__ Gap Home will make its stores more competitive in the home category through exclusive offerings at accessible prices (think: a $65 king comforter set).

_Gap joins the House Hype party [Maskot via GettyImages]_

Homey

__Retail reflects the economy...__ and the middle may be getting squeezed. The consumer confidence gap between low earners and high earners has nearly [tripled](https://www.axios.com/inequality-consumer-confidence-tripled-year-index-ad01b834-a435-4e8f-8a20-4490bd73db94.html) since May. Louis Vuitton and the Dollar Store are thriving, while J. Crew is in the middle trying to find its customers. Gap was hanging in the "middle" sphere for a while, but Gap Home represents a move *down* market. That could be a smart move, if the consumer confidence gap widens. 


Gap teams up with America's largest retailer to launch a home decor brand — here's why

__It's on sail...__ __[Royal Caribbean](https://robinhood.com/stocks/RCL)__ got the first green light from the CDC to start "test cruises," after being landbound for over a year. Cruise companies like RC and __[Carnival](https://robinhood.com/stocks/CCL)__ haven't been allowed to operate in the US — their biggest profit puppy — since *March 2020*. The test cruises are expected to start sailing from Miami in late June. 

__Will there be "test buffets"?...__  Test cruises are required for ships that *aren't* guaranteeing that at least 95% of passengers have been vaxed. The simulated cruises will carry "Volunteers of the Seas." In case you're interested: you have to be 18+ and agree to be Covid-tested. If Covid cases hit a certain level, RC will have to end the cruise. 

- __"Real" cruises:__ RC said it will require all passengers who are 16 or older to provide proof of vaccination when revenue cruises resume. 
- __Awkward:__ Florida just passed a law that prevents cruise companies from asking passengers for proof of vaccination. 


Cruise

__Cruise companies have "slingshot" potential...__ but they may not be able to milk it yet. "Slingshots" are companies whose performance could surpass *pre*-pandemic levels, thanks to pent-up demand from their pandemic absence. Carnival already has [more](https://www.travelandleisure.com/cruises/carnival-cruises-booking-numbers-2022#:~:text=Had%20in%202019-,Carnival%20Says%20It%20Already%20Has%20More%20Bookings%20for%202022%20Than,Carnival%20CFO%20David%20Bernstein%20said.) cruise bookings for 2022 than it did in 2019. But even though half of US adults are fully vaxed, half *aren't*. Test cruises are a step forward — but CDC restrictions mean cruise companies may not be able to fulfill their slingshot potential for a while. 

Royal Caribbean gets the first go-ahead for dress-rehearsal cruises 

🚢 The test cruises are coming

__Bad week for oil giants...__ Last month, __[Exxon](https://robinhood.com/stocks/XOM)__'s activist investor __Engine No. 1__ slammed Exxon's energy transition plan — or lack thereof. The hedge fund sounded the "[Blockbuster Alarm](https://snacks.robinhood.com/newsletters/GthYqJXfXa1UXvTAPKzZr/articles/1zYvayrbd8lJxnS8ecuB30/)," saying Exxon faces an existential risk from tying its future to fossil fuels. Unlike Shell and BP, Exxon hasn't vowed to move away from oil and gas, arguing they'll remain key. Now, *it might not have a choice*.

- __Surprise:__ Engine No. 1 won at least two seats on Exxon's board, a historic defeat for Exxon that will likely force it to change its oil-focused strategy. 
- __Receipts:__ Engine's bid to win shareholder votes — and Exxon's quest to prevent that — became one of the most expensive proxy fights *ever*. 

__The little Engine No.1 that could...__ Engine No. 1 owns only  0.02% of Exxon’s stock. Though Exxon aggressively  tried to persuade  investors to vote against Engine, it still managed to snag seats. Engine capitalized on retail investors’ worries about Exxon's shrinking profits —  *and its future in a lower-carbon economy*. 110+ countries have pledged carbon neutrality by 2050. CA, Japan, and the UK said they'll start banning sales of new gas cars in the 2030s.

- __[Shell](https://robinhood.com/stocks/RDS.A) took an L, too:__ Yesterday, a Dutch court [ordered](https://www.wsj.com/articles/shell-ordered-by-dutch-court-to-cut-carbon-emissions-11622038961?mod=business_lead_pos1) the oil giant to cut its carbon emissions, an unprecedented ruling that could set a precedent in other European countries. 
- __[Chevron](https://robinhood.com/stocks/CVX)__ investors just [voted](https://www.reuters.com/business/energy/chevron-shareholders-approve-proposal-cut-customer-emissions-2021-05-26/) in favor of a proposal to cut emissions, rebuking the C-Suite. 


Vote

__Tackle climate change or *be* changed...__ Oil giants are facing heightened pressure from governments and investors to reduce emissions and embrace renewable energy. __[BlackRock](https://robinhood.com/stocks/BLK)__, one of Exxon's largest investors, signed a pledge supporting net zero carbon emissions by 2050 or sooner. That pressure from investors and governments has real consequences, as we saw this week. Now, change-resistant companies like Exxon might be *forced* to change.  

Forced to go green(ish): Exxon and Shell may have to radically rethink their biz models

__*"I-I-I'm in the stars tonight"...*__ __[McDonald's](https://robinhood.com/stocks/MCD)__ has been seeing stars (and $$$ signs) thanks to its Famous Orders program, which launched last year. Fried chicken sandwiches weren't the only stars of McD's  quarter: meal partnerships with Travis Scott and J. Balvin boosted digital sales. In McD's own words: "nothing had a greater impact on our digital business than the introduction of Famous Orders." Last quarter, McD's sales even beat *pre*-pandemic levels. 

- __"The BTS Meal"...__ Yesterday, McD's [released](https://www.cnn.com/2021/05/26/business/bts-meal-mcdonalds-merchandise/index.html) its long-awaited meal with K-pop sensation BTS. It's the first celeb collab to launch globally. 
- __Unbox it:__ 10-piece Chicken McNuggets, medium fries, a Coke, and two Korean-style dipping sauces (sweet chili and Cajun). Missed opp to call them "Dynamite Nuggets."

__So much more than nuggies...__ This BTS deal is more than a meal — *it's a global event*. People are obsessed with BTS, and McDonald's is milking it. Fast food chains operate on razor-slim profit margins, so promotions like these can be game-changers:

- __Merch:__ McD's is dropping a limited-edition BTS merch line (including: a fuzzy purple robe with a fries logo). J. Balvin and T. Scott also got merch.
- __Exclusive content:__ McD's is releasing "never-before-seen digital surprises" featuring BTS in the McD's app to drive digital sales. 
- __Spots:__ McDonald's TV ad — which debuted last night —  uses BTS' newest hit, "Butter." *So smooth*. 

_Apparently,  BTS makes fries taste better [Bonfanti Diego/Cultura via GettyImages]_

Dynamite

__It’s the “Golden Repackage” strategy...__ McD's just proved that you don’t need a new product to gain new customers. The best thing about the BTS meal: it's composed of basic items that McD’s is *already* making. Just ship franchisees the dipping sauces, and voila: BTS Meal. Famous Orders drive sales *without* adding new ingredients or workflows. McD's calls it: "maximizing digital investments without adding any restaurant complexity." This repackaging strategy drives customers to the app and keeps them there, boosting loyalty and sales.


💴 Bitcoin's legal tender moment

💰 Bitcoin, un-ransomed

💰 The Big Tech tax

🇺🇸 Is the American Dream still alive?

🍧 Tesla's drive-in restaurants

🍿 AMC's stock surge

🚗 Uber's endless surge pricing

💵 The Great Divide

🚢 The test cruises are coming

🍟 McD + BTS = Dynamite